SELVA 1

CURRENT SCENARIO IN AUTO INDUSTRY

Presentation by SELVA

(M.SELVARATHINAM)

1 September 2010

Thiagarajar College of Engineering, Madurai

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1,000

2,000

3,000

4,000

5,000

6,000

9,000

12,00015,000

18,000

21,000

2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

S KOREA

CANADA

MEXICO

FRANCE

UK

INDIA @8%

CHINA

JAPAN

US

USD BILLIONS

Real GDP *

INDIA HAS THE POTENTIAL TO BECOME ONE OF THE TOP 5 ECONOMIES BY 2025…

INDIA WOULD BE THE THIRD LARGEST ECONOMY (AFTER CHINA & US) by 2050 “GOLDMAN SACHS REPORT)

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RANGE OF VEHICLES MADE IN INDIA

Indian Automobile Industry

Light Pass. Vehicle Commercial vehicle Tractors Two Wheelers Three Wheelers

PCs / MUVs / SUVs LCVs / M&HCVs

/ Buses

Farm/Earthmoving & Construction Equipments

Motorcycles/ Scooters / Mopeds

Passenger Carriers / Good Carriers

SELVA

COST PRESSURE ON GLOBAL OEM WILL DRIVE DEVELOPED COUNTRIES TO OUTSOURCE FROM LOW COST

COUNTRIES

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EUROPEAN COMPACT CAR EXAMPLE

Price squeeze on global OEMs

‘000 Euro/Vehicle

11 4

15

12

3

Car cost2002

Added cost of innovation, mostly from electronics, emission and safety regulations

Total expected cost in 2015

Car cost that market can bear in 2015

Target cost reduction, mostly in mechanical parts

Source : McKINSEY Report

INDIAN SMALL CAR: $ 2000 US., INDIAN TWO WHEELER:$ 400 US

SELVA

COMPONENT PRODUCTION RANGE

Suspension & Braking parts,

12%

Drive Transmittion & Steering parts,

19%

Electrical Parts, 9%

Body & Chassis, 12%

Others, 7%

Engine Parts, 31%

Equipments, 10%

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6

AUTOMOTIVE CLUSTERS

NORTH

SOUTH

WEST

EAST

N

W E

S

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THANK YOU FOR YOUR ATTNETION

. ANY QUESTIONS?